Spain
Economy
Under the Franco regime, up until 1975, the
Spanish economy developed almost in isolation, protected from
foreign competition by tight import controls and high tariffs,
and gradually evolved from an essentially agrarian economy
to an industrial one. Spain joined the (then) European Community
in 1986.
The transition, was expected to be very difficult, passed
off remarkably well and currently the Spanish economy now
ranks eighth in the world by output. Despite the decline of
many of its traditional industries, such as steel ,shipbuilding
and textiles, Spain achieved the highest average growth rate
in the Community during the 1980s and a steady performance
throughout the 1990s. This was largely due to the growth of
its service sector, which now accounts for two-thirds of economic
output.
The only significant legacy of structural weaknesses in the
Spanish economy which has not been fully tackled is unemployment,
which remains stubbornly high at eleven per cent of the workforce
in 2004. However, other economic indicators, such as interest
rates and budget deficit, are within the limits which allowed
Spain to join the European Monetary Union
during 1999. In common with most of its EU partners, the Spanish
economy has slowed somewhat since 2000, although annual GDP
growth increased during 2004 to three per cent.
The agricultural sector produces cereals, citrus fruit, vegetables,
olive oil and wine. The processed foods industry has also
rapidly expanded.
The fishing fleet, although reduced from its peak of a few
years ago, remains one of the world’s largest. The relative
importance of the agriculture, forestry and fisheries sectors
has declined over the last decade and now accounts for less
than four per cent of GDP.
Energy requirements are met by indigenous coal and natural
gas, imported oil, mainly from north Africa, and a sizeable
nuclear power programme. In the manufacturing sector, the
decline of the older industries has been offset by rapid expansion
in chemicals, electronics, information technology and industrial
design.
Spain has become an important producer of motor vehicles,
this industry alone accounts for five per cent of GDP and
80 per cent of all output is exported. In the service sector,
Spain has a vast tourism industry mainly
servicing visitors from northern Europe. In 2002, this brought
an estimated $40 billion (about seven per cent of GDP) into
the economy. Financial services, media, transport and telecommunications
have also undergone substantial growth. The EU countries,
Japan and the USA are the country’s main trading partners.
Business Etiquette
Businesspeople are generally expected to dress smartly. Although
English is widely spoken, an interest in Spanish and an effort
on the part of the visitor to speak some words will be appreciated.
Business cards are exchanged frequently as a matter of courtesy
and appointments should always be made. Punctuality is important.
Office hours
Tend to vary considerably. Businesspeople are advised to check
before making calls.
Commercial Information
The following organisations can offer advice: Consejo
Superior de Cámaras de Comercio, Industria y Navegación
de España, C/Ribera del Loira 12, 28042 Madrid (telephone
number: (90) 210 0096; fax number: (92) 528 0007; e-mail:
info@cscamaras.es),
or Instituo
Español de Comercio Exterior (ICEX), 2nd Floor,
66 Chiltern Street, London W1U 4LS, UK (telephone number:
(020) 7467 2330; fax number: (020) 7487 5586; e-mail: buzon.oficial@londres.ofcomes.mcx.es)
Conferences/Conventions
Many large towns have dedicated convention centres in addition
to the facilities provided by hotels. Seating capacity ranges
from 540 in Jaca to 4200 in Palma de Mallorca and Madrid can
seat up to 2650 persons.
Further details can be obtained from the Spain
Convention Bureau (FEMP), Calle Nuncio 8, 28005 Madrid
(telephone number: (91) 364 3700; fax number: (91) 365 5482;
e-mail: secretaria@femp.es),
or Oficina
de Congresos de Madrid, Calle Mayor 69, 28013 Madrid (telephone
number: (91) 588 2900; fax number: (91) 588 2930; e-mail:
congresos@munimadrid.es);
or from the Spanish Tourist Office (see Contact
Addresses section). |
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